Agenda 06-02-2026; 8-a - Minutes for May 5, 2026

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27 1 BACKGROUND: This item marks the first formal steps in the Board's approval of the County's annual 2 financing for capital investment projects and equipment for County purposes. County staff estimates that 3 the total amount to be financed this year will be approximately$60.8 million. 4 5 This year County staff recommends dividing the total financing package into two (2) parts, with one 6 financing closing in June 2026 and the other closing in late July or early August 2026.This division into two 7 (2) separate bond issues will allow the County to both replenish funds advanced for project costs before 8 the end of the County's fiscal year, and then allow the County to borrow the required funds for the crisis 9 diversion center without having to advance funds for a full year. 10 11 The law requires that the County conduct a public hearing on the proposed financings. A copy of the 12 published hearing notice is provided at Attachment 1. The notice of public hearing was advertised in the 13 News of Orange. 14 15 After conducting the public hearing and receiving public input, staff requests that the Board consider the 16 adoption of a resolution (Attachment 2). This resolution formally requests the required LGC approval, 17 makes certain "finding of fact" as required under the LGC's guidelines, and authorizes County staff to 18 continue the process. County staff has been in contact with the LGC staff, and staff expects no issues in 19 receiving LGC approval for either phase of the financing.This public hearing and adoption of the attached 20 preliminary resolution will fulfill those particular legal requirements for both financings. 21 22 If the Board adopts the attached resolution, the Board will be asked to consider a resolution giving final 23 approval to the Phase I financing plans at its Business meeting on May 19, 2026. 24 25 The Board will be asked to consider a resolution for the Phase II financing at the July 9, 2026 Business 26 meeting. The primary use of the Phase II proceeds will be for construction costs of the crisis diversion 27 center, and so that borrowing amount can be set after the final construction contract amounts are 28 established. Any changes to the plans for the Phase II financing will not have any material adverse effect 29 on the Phase I financing. 30 31 County staff does not expect to use any of the 2026 financing proceeds to fund capital projects for public 32 schools. For projects through the current fiscal year, the County has identified other funds in hand 33 sufficient to fund school projects. Staff expects the County will finance school project costs in the coming 34 fiscal year through the issuance of some of the voter-approved general obligation bonds or otherwise. 35 36 Notes regarding certain projects: 37 - The Blackwood Farm Park project pertains to re-graveling and drainage work.There is no financing 38 associated with this item for the proposed disc golf course. 39 - The Affordable Housing project pertains to Habitat East Village(funding for site infrastructure and 40 development for East Village at Meadowlands 76 new units (2, 3, and 4-bedroom)of which 64 will 41 be affordable Habitat homes for first-time homebuyers earning between 30% and 80% of area 42 median income(AMI).The remaining 12 units(15%) in East Village will be market-rate homes. Pee 43 Wee Homes pertains to construction of three new affordable rental homes ("tiny homes") at 106 44 Hill Street in Carrboro. 45 - The 510 Meadowlands Phase 2 project pertains to remediation costs. 46 COLLATERAL: In this type of County installment financing,the County secures its obligations to the lender 47 by a mortgage-type interest in some or all the property being acquired or improved through the financing. 48 The County plans to secure the 2026 financing with a variety of County facilities previously pledged to